Magnet Capital: Part of FTX reimbursement funds may flow back into the crypto market

Creditors of the bankrupt cryptocurrency exchange FTX will receive over $12 billion in funds according to a court-approved payment plan in the coming months, increasing the possibility that some cash may be reinvested into digital assets.

According to information released by FTX, the group has already recovered between $14.7 billion and $16.5 billion in funds, with creditors claiming an amount of $11.2 billion.

Benjamin Celermajer, co-chief investment officer at Magnet Capital, said that the anticipated repayment from FTX "is essentially providing liquidity to known cryptocurrency traders. We are likely to see some funds flow back into the crypto market, potentially acting as a price catalyst for markets lacking liquidity." It's worth noting that repayment won't happen immediately; FTX must first establish a trust and hire companies to oversee fund allocation processes.